As the trade war between Beijing and Washington increases, less ships carrying US LNG have been going to China. Specifically, in 2017 China bought about 15% of all US LNG shipped in 2017. During 2018, it has received from only four vessels since June, in comparison to 17 during the first five months of the year.
As Reuters reported, before the trade war, China was about to import 141.6 billion cubic feet of US LNG in 2018. An increase from 103.4 bcf in 2017 and 17.2 bcf in 2016.
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Now, China will buy less than 100 bcf of US LNG in 2018, while the US is expected to export more than 1,000 bcf of gas as LNG in 2018.
What is more, LNG traders say that this decrease is also due to seasonal weather factors, as China uses more gas during winter months for heating than during the summer.
China is now the world’s second biggest LNG importer and is buying more gas as the government tries to limit the use of coal, in order to reduce pollution.
The US is expected to become the world’s third biggest LNG exporter by 2019.
